Ideas for CAPS blog series - Economic Myths
I'm looking to the CAPS community for ideas on a blog series.
Since my first post in CAPS, I have tried (but occasionally failed) to stay within my small box of knowledge. For example, you won't see me breaking down the technical aspects of a stock's price. It's a worthwhile topic with a high demand here, but there are better bloggers already here for it. My box is economics and economic history - topics that CAPS readers appear to demand judging by the response. So I'm happy to continue for as long as life makes it possible.
About a year ago, I did a seven part series on money creation. It was well rec'd. Since then my writing and argumentation skills have improved. Sitting down today, I surveyed a few of the economic myths that I could deconstruct on CAPS, providing me with a chance to do the research I enjoy and providing the community with access to knowledge they find interesting.
Instead of just picking one myself, I am looking to my friends on CAPS for ideas. What economic myths would you like to see completely eviscerated from top to bottom in a blog series?
Here are some that I am mulling over:
Myth: Antitrust law serves the consumers by breaking up monopolies that use predator pricing (or other unfair cutthroat competitive practices) and unfair labor practices.
Fact: Antitrust prosecution never has the consumer in mind, is almost always devoid of any real evidence, is often instigated by inferior yet politically-connected competition, and diverts the public from the real monopolies the government and its cronies are creating.
Myth: Herbert Hoover's do-nothing laissez faire approach was a prime factor in causing the Great Depression
Fact: Hoover was a Progressive and hyperinterventionist whose array of failed policies are entirely ignored so that academics/politicians can lay the blame for the Great Depression on a failed market while they usher in policy after policy that Hoover himself would have cheered.
Myth: Unions are the primary reason that wages have risen in capitalist nations.
Fact: The primary cause for the increase in the standard of living in any nation is an increase in capital investment. Capital investment makes labor more productive, stretching the dollar of every worker, causing a rise in real wages. There is nothing that Unions can ever do to bring about a general rise in the standard of living of the nation's workers.
Myth: FDR saved us from the Great Depression
Fact: The only thing FDR saved us from is a quick recovery, just like his hyperinterventionist predecessor Herbert Hoover
Myth: Capitalism is inherently wasteful
Fact: This one is usually tossed around by the peddlers of class warfare. The waste they are witnessing is the process of dynamic discovery, whereby entrepreneurs take risks to discover the best way to satisfy consumer demands. Of course, government waste is rarely if ever compared to entrepreneurial "waste" by these same critics.
Myth: Central Planning works
Fact: It doesn't
I'm open to tackling any of these subjects, or another if anybody has a better idea.
Of course, I have detractors among my regular readers. I'm willing to look at your ideas as well, if they are within my range of expertise and they are serious requests. So fire away and let's see what we get.
David in Qatar